article thumbnail

Should Startups Care About Profitability?

Both Sides of the Table

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. The first company represents a normal software company that sells its products directly (either via sales staff or directly off of the internet).

article thumbnail

Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

Since selling Matt has gone on to become one of the smartest angels I have seen operate. As internet crashed media became cheaper so they bought more and their tracking and analysis became really good so they did better. Mark: 10% warrant coverage is like stock options. He wanted to see all the data himself.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

4 Tips For Startups During A Pandemic

YoungUpstarts

If possible, offering stock options in lieu of raises or to counteract pay cuts is another way to build security. These changes fit the needs of the current crisis, but also look forward to a time when consumers will be operating on leaner budgets.

Startup 287
article thumbnail

Fog Creek Compensation

www.joelonsoftware.com

Wanted: High Frequency Performance Operations Specialist at Two Sigma Investments (New York, New York United States). Level 12-13 Operational. As the company grows, the initial package of stock options offered to new hires will be lower and lower. At any given time, stock option awards are equal based on level.

article thumbnail

What Just Happened With OnLive?

Feld Thoughts

If you were around during the collapse of the Internet bubble, you’ll remember this. In some cases this is just for cash to pay off creditors; in other cases it’s a way to sell the company to a new owner and keep the business operating. OnLive looks to me like the second case.

article thumbnail

Groupon's S-1: From Zero to Like? Billions in 30 Months ? AGILEVC

Agile VC

It also puts another chink in the armor of the meme that monster internet companies can only be built in Silicon Valley (LivingSocial, Kayak, Gilt Groupe, CSN Stores, et al doing damage here too). The company is currently unprofitable, though generating meaningful free cash flow.

article thumbnail

Do It Right The First Time, Part II: Visit the Doctor or House Call?

Gust

Form a legal entity to operate the business (we’ll use a Delaware corporation as an example for Newco). The next category is more promising for those who aspire to the corporate legal equivalent of the Homebrew Computer Club : Common Operating Documents. Appoint Newco’s initial Board of Directors. Offer letters for employees.